Ultimate magazine theme for WordPress.

The Job Creation Law Simplifies Permits for the Upstream Oil and Gas Law


By: Gerry Kurniawan) *

U U Cipta Kerja is not only good for the labor or investment sector, but also in the oil and gas sector (oil and gas). There will be bureaucratic simplification and licensing will be made easier. So that oil and gas entrepreneurs will benefit greatly. The oil and gas sector in Indonesia will advance and provide many benefits for the government.

Indonesia has natural wealth in the form of abundant oil and gas reserves. However, the oil and gas sector in our country is still not as advanced as other countries. whereas the natural resources and human resources are of very good quality. President Jokowi is trying to make us progress through the oil and gas sector, so that it can become an Asian tiger.

To advance the oil and gas sector, a Job Creation Law was made. In this law there is a clause on the ease of doing business, so that business licenses will be made easier. SKK Migas stated that the simplification and acceleration initiated by the government through the Job Creation Law could increase investment in the upstream oil and gas sector.

Upstream oil and gas is the sector of processing raw materials before they are made into products. Therefore, it requires large funds to convert crude oil and gas into products that can be enjoyed by the community. If funding from the government is still insufficient, the solution is to find investors, so that the upstream oil and gas business will run smoothly.

The problem is, foreign investors are still reluctant to go to Indonesia, because the rules of the game are very complicated. Unfortunately, since the New Order era we have been accustomed to long bureaucracy, and this cannot be accepted by foreign investors. Even though they have the potential to improve the oil and gas sector in Indonesia.

When there was a Job Creation Law, there was a cluster of ease of doing business. So that the bureaucracy is trimmed and licensing is simplified and also accelerated. Business licenses are divided according to risk: high, medium, and low. Meanwhile, the initial licensing duration can be months, reduced to 7 working days.

In addition, business licenses can be processed online . So that foreign investors will be interested, because there is certainty in investment regulations and permits that are greatly facilitated. For them, time is money . Therefore, accelerating business legality is very much in accordance with this motto, and finally willing to invest in the upstream oil and gas sector.

If the upstream oil and gas sector is supported by investors, production will run smoothly. The processing of oil and gas will be made easier, so that it will be more productive. Oil and gas yields will increase significantly, thus benefiting the government and all Indonesian people.

Therefore, the implementation of the Job Creation Law in the oil and gas sector must be carried out as soon as possible. The goal is that processing in the upstream oil and gas sector can be accelerated and become more professional. As a result, Indonesia no longer imports gas and oil, because the oil and gas production itself is sufficient. So that it does not depend on imported taps.

The public does not need to be afraid of investors entering the upstream oil and gas sector. The reason is because it does not mean that the government has sold SOEs that process oil and gas to foreigners. Or this investment is disguised colonization.

However, investors are only allowed to acquire processing in the upstream oil and gas sector by 15%, while the rest is still handled by the government. If foreign investors only receive such a large share, it does not mean that the President has ‘sold’ Indonesian assets. In addition, investors must also meet the requirements before entering the upstream oil and gas market in this country.

Licensing in the upstream oil and gas sector makes this sector profitable, because the bureaucracy is no longer confusing. Apart from making the management simpler , this will attract investors. They will share in upstream oil and gas processing and make it a very advanced field.

) * The author is a contributor to the Pertiwi Institute

Leave A Reply

Your email address will not be published.